St. John’s Housing Market Records Stellar Second Quarter

August 8, 2008 · Filed Under St. John's Real Estate · 1 Comment 

Released from CMHC today

The St. John’s area housing market recorded a stellar second quarter, thanks to a bustling economy, positive net-migration and stable consumer confidence. These factors combined increased the level of demand for both new and existing homes throughout all municipalities within the region during the April to June period.  Strength in the existing homes market continued, while growth in residential construction activity was led by a surge in starts of single-detached homes. As expected, the positive momentum from last year’s Hebron and White Rose oilfield extension announcements, combined with favourable demographic and economic fundamentals, produced record second quarter results.

Although 2004’s record second quarter housing starts actually exceeded second quarter 2008 levels by 110 starts, demand for new homes from April to June was exceptional within the St.  John’s region. In fact, starts were limited only by builder capacity constraints due to a very tight labour market for skilled trades. In support of this, most new home contracts signed so far this year have been for completion as far as nine to 12 months out and include final price protection clauses for builders. Such high demand boosted residential construction activity throughout the St. John’s region during the second quarter and resulted in double-digit growth.

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Regetta and Hebron – to be confirmed

August 6, 2008 · Filed Under Local St. John's and St. John's General · Comment 

News this morning (5:45am) postponed the 190th St. John’s Royal Regatta due to weather, maybe til Thursday (personally I’d say Friday)  Could make it a long weekend in St. John’s.  So it’s business as usual this first Wednesday in August.

Speaking of business….the Hebron deal has been postponed as well.  Final last minute details are still being worked out.  The memorandum of understanding expires August 21st.

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No Provincial Economy Immune from US malady

April 3, 2008 · Filed Under Market Trends and St. John's Real Estate · 1 Comment 

RBC released it’s Provincial Outlook today and is quite clear “no provincial economy immune from US malady”.

The tone for the report is caution throughout most sectors including labour, housing, exports and Canadian dollar.

Saskatchewan is expected to be the growth leader in 2008 as its economy benefits from strength in energy, mining, and agriculture. Newfoundland is expected to be the laggard as waning oil production weighs on its growth.

Housing affordability is poised to improve across the country this year on the back of falling mortgage rates and cooler house price gains. House price growth is expected to move into the single-digit range in almost every province by year-end. This contradicts Remax’s 2008 house price increase for St. John’s but is in line with CMHC’s report.

Saskatchewan will continue to benefit from last year’s in-migration surge in 2008 before housing activity simmers down in 2009. Every province except Saskatchewan is likely to see a decline in new home construction in 2008.

Saskatchewan — The new provincial growth leader
We expect Saskatchewan to be Canada’s top growth performer this year, coming in at 3.6% in 2008 and 3.2% in 2009. Saskatchewan and Manitoba have become the new ‘it’ provinces with hot housing markets, big capital spending plans and tight labour conditions. Saskatchewan now ranks number-one across all key housing indicators that we track. House prices became overvalued in a very short time and it is likely only a matter of months before a decelerating trend sets in to bring markets back closer in line with underlying fundamentals. The cool down is likely to be similar to what is currently going on in Alberta. On the business side, however, Saskatchewan has more upside potential than Alberta. Saskatchewan benefits from strong export volumes and high prices for oil, uranium, potash and grains. A surge in migration inflows confirm that these strengths are being noticed. The unemployment rate (4%) is holding at its lowest rate in 25 years and skilled labour shortages are a growing concern. Labour shortages are supporting the fastest wage growth in the country.

Newfoundland and Labrador — Waning oil production
Newfoundland topped the growth charts last year — growth is expected to have come in at about 9% — but is set to slip to last place in 2008 as oil production declines. Offshore oil production is expected to drop 15% in 2008 as all three oil producing fields face falling production volumes. Prospects for expansions at existing oilfields leave the door open for upside potential in the early part of the next decade. Potential projects include the Hebron development, the Hibernia Southern Extension and an expansion at White Rose. The province’s mining sector (mostly made up of nickel and iron ore) is offsetting some of the weakness on the oil front. Iron ore prices have soared by 66% since 2007 and are expected to keep the value of shipments at an elevated $4 billion in 2008 for a second consecutive year.

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Seven Reasons to Relocate to St. John’s

March 25, 2008 · Filed Under Newfoundland Top 7 · 3 Comments 

Anyone who has ever been to North America’s Oldest City can attest to the fact that it’s a great city. St. John’s has become a great place to relocate for a variety of recent economic reasons. Here are my reasons why St. John’s Newfoundland is a good choice for relocation.

7. Scenery – View Newfoundland’s spectacular coastlines, panoramic views, icebergs, whales and provincial parks.

6. Affordable Housing – Average real estate price for in St. John’s is lower then most cities in Canada. We are seeing more and more emails from people in Vancouver, Calgary and Toronto looking to relocate back to Newfoundland or looking to invest in Newfoundland.

5. Quality of living – Enjoy a high standard of living, low population, great schools, little traffic, fresh clean air and genuine Newfoundland hospitality.

4. Proximity – Your commute to and from work, schools and amenities is VERY short. You can drive from East End St. John’s to West End in about 15mins. With the Outer Ring Road, commute time from Paradise and CBS has been reduced significantly.

3. Nightlife – There is always something to do in the evenings. Plays, theater, beautiful restaurants and live music at most George Street bars.

2. Outdoor Activities – There are lots of winter sports (skiing, ice fishing, skating, snowboarding, ice hockey, snowmobiling, etc.) and endless summer activities (golfing, baseball, soccer, swimming, jogging, sea kayaking, rowing etc.). Hike or camp the trails in provincial parks or the East Coast Trail. Hunt moose, rabbit, caribou or pick blueberries. There is something here for everyone.

1. The next few years are looking very promising for Newfoundland. There is a lot of hype on our oil and gas industry. Hebron, White Rose, Hibernia, and the Terra Nova Project, all major contributors to the Newfoundland Economy. This combined with the low cost of living makes St. John’s an attractive city to relocate.

Allow Fraser and Stephen Winters to assist you when relocating to St. John’s or surrounding areas. Email us for a relocation package.

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7 Reasons to Invest in Newfoundland Real Estate

March 2, 2008 · Filed Under Newfoundland Top 7 · 4 Comments 

The Top 7 Reasons to Invest in Newfoundland Real Estate are:

7. Average price for a home in Newfoundland is MUCH lower then the Canadian average house price. A 2-apt home for $200,000 can fetch you an extra $1600 a month cash flow (before expenses and mortgage)

6. The next few years are looking promising for the real estate market. Remax is predicting a 12% increase in housing prices for 2008.

5. Oil and Gas – Hebron, White Rose, Hibernia, Terra Nova Project, all major contributors to the Newfoundland Economy.

4. The cost of living in Newfoundland is lower per person/family then other provinces in Canada.

3. Danny Williams. Whether you like him or not, the “Danny Williams Effect” has certainly placed a positive spin on Newfoundland.

2. View some of the most spectacular images in the world off the coast of Newfoundland and Labrador. Watch whales breach and icebergs float by your reasonable priced ocean front property. Own a little corner of the world you can call your own.

1. Quality of living. Newfoundland being an island has a low crime rate and a high standard of living. Little to no traffic. Plenty of provincial parks and golf courses. Top notch amenities. As well as our genuine Newfoundland hospitality, quick wit, and charm.

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Newfoundland Economy, Real Estate and Tourism

March 1, 2008 · Filed Under St. John's Real Estate · Comment 

Today, The Telegram included a “Horizons” section in the Saturday paper. Horizons is an Annual Business and Industrial Review and Forecast. It was evident that the pages were filled with talks of boom and wealth for Newfoundlanders. I was fortunate enough to receive a call last week for an interview with The Telegram for the real estate portion. How was I contacted – this blog. Other then the fact my name was spelled incorrectly I was pleased.

As I read through Horizons it was interesting to note the various headlines were powerful and promising. Article titles read “oil wealth driving provincial economy, impending boom, real estate hot thanks to Hebron Ben Nevis, growth and innovation in changing times, commercial industry growing.” Not only is Newfoundland and Labrador’s capital city St. John’s noticing a significant increase in the housing market, but Torbay, Flatrock and Conception Bay as well.

Tourism was another hot topic. References to new hotels in the downtown St. John’s (five hotel proposals) and a flourishing cruise industry. 61,000 tourists are expected to visit “The Rock” for 2008 via cruise lines.

It’s clearly one of most promising times for Newfoundland.

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NewfoundlandLabrador.com

February 11, 2008 · Filed Under Local St. John's and St. John's General · 1 Comment 

Lately the Government of Newfoundland Labrador has been flocking the television with commercials promoting tourism to Newfoundland Labrador. If you frequent TSN, Business News Network (BNN), or FoodNetwork to mention a few, you’ll notice this ad being televised many times throughout the course of a TV show.

With increased hype in St. John’s real estate due to recent news in offshore oil developments (particularly Hebron), it appears not only an increase in real estate for Newfoundland, but a number of people vacationing to Newfoundland. The budget for tourism for 2008 is stated to be approx $12 million, doubling the budget since the current government took office in 2003.

Newfoundland Labrador’s unique tourism marketing won the Tourism Industry Association of Canada’s (TIAC) Marketing Campaign of the Year Award in November of 2007. It was also listed in the Bluelist Book, a top 30 travel destination for 2008 by Lonely Planet Publications, one of the world’s most respected travel guidebook publishers.

Newfoundland and Labrador was most recently recognized by an internationally-respected travel guide as a top destination of choice. The Fodor’s travel web site is currently featuring a section entitled “Where We’re Going in ’08: Seven Places Americans Have Yet to Discover“, which includes a recommendation to visit this province.

Newfoundland, rich with history. Rife with culture. Sprawling with natural beauty. All these wonders have been here for thousands of years, embraced by those who happened upon them. It’s up to the traveler to enjoy them, to go vigorously in search of people, adventure, of places to experience. Around every bend you will find a piece of heaven, a delightful sight, a playful breeze that will help your journey.

“The Lonely Planet, Travel and Leisure magazine, The Wall Street Journal and CNN are among the highly-acclaimed travel publications, news outlets, and web sites which have recently discovered our province as a unique travel destination,” Minister Jackman said. “The world is discovering our secret, and we are more than happy to share it with them.”

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